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Hi Thordon, please read the July update re Covid. Regards profit I think both you and Scroding are too pessimistic. If you look at the revenue figures over the last 3 years and compare them to the loss figures you will see one soaring and one being tightly managed. This is I believe is the breakthrough year.
The Osprey purchase could be a bit of a dent because of the wage bill. However boosting our consultancy capabilities could be a real money spinner next year. After all if consultancy and overview are one of our stock in trades then profitability is in the BoD hands! Buy now while stocks last!
I have a feeling that we are going to be underwhelmed again. RNS releases prior to results painted a positive trading picture last H1 not a sniff of a positive trading comment this time around. The market seems to think the same, anyway roll on next week if it rises above 7p great and if it drops below 6p again I will have to think long and hard if I'm prepared to throw more money at an investment that has gone backwards since my entry point 3 years ago. GLA.
looking at TP Group we have no indication of this company coping during covid 19 or a profit.
Contract wins always appear , and the usual purchase of another company.
Really stuck about this company as the head say strong but , the other says sell if you do the maths.
Cannot Gamble so will wait for the RNS in six days , if i pay more then that's a price to pay.
Seems the directors are on good pay as well.
Good Luck who bought
I want to see some decent results come the 20th irrespective of 2020 being a 'covid' year.
I don't want the Board using this as an excuse.
Shareholders have not featured at all in the Board's announcements in recent years. We've had some loss of Institutional Investors. A substantial placing was made more than 3 years ago now, I added quite substantially then and shareholders are entitled to see a return on their capital at some stage or what is the point ? We're not providing a social service and management, particularly Mr. Phil Cartmel are doing very well out of the company.
We've been drip fed regular notice of contract wins but clearly they've been insufficient to date - are they building on a profitable base and enhancing capital or are they finding work for the staff ? So far, in my opinion, they've clearly been work fillers - it's time for Management to prove themselves.
And yes TT we are certainly due a significant rerate as the step-change here is more and more visible. Just look at the involvement of the group in cutting edge technologies.....and that's backed up by solid, long-term government and blue chip contracts with huge barriers to entry. TP is in an enviable space at present. A bigger player (or two!) must surely be eyeing up TP itself I am sure!!!
Delving deeper into last years accounts ORGANIC profit growth and revenue growth were almost 30% and 20% ahead.....that is solid. Yes TP incurred a statutory loss but that was against acquisitions. Adjustments this year should be significantly reduced allowing the bottom line to benefit directly. It would be great to see a year of clean accounts with no acquisitions but when obvious value enhancing targets appear at the right price it's wise to pick them up. This team has excellent credibility when it comes to incorporating and extracting synergies from all its purchases. Sound value will eventually become apparent to the big II's.
I've Just got a feeling that the figures on the 20th are going to get a bit more attention than normally. We should also get a good heads up on the 3rd quarter too. Could this be the breakthrough year?
Adastra, that ignores the last raise. 6.5p which most holders will have taken up. So they have seen a 7% return if they sold today in 3 and a half years and less than that if we take the 6 month average and sold before today.
PM44, plenty of AIM stocks pay dividends and are profitable but as this is the junior market there are also plenty of vehicles that are either too niche, just cynically used to pay off debt, new concepts (tech), fundamentally flawed, badly run or just a complete waste of time I agree. TPG is a good AIM stock and I do begrudge Cartmell's supposed £500K salary but he's done well here to achieve what he has so far. There looks to be a path to profit and if the board want to achieve a £100M+ market cap then it will need to entice bigger institutional investors which means demonstrating profit and paying a dividend amongst a plethora of other things.
Whilst I agree with some of the short-term sentiment I have to point out that the 5 year graph for TPG speaks for itself. The business since 2015 has grown strongly both organically and by acquisition. An investment in TP during that journey has delivered in terms of capital growth. Dividends will come, but the track record is pretty darned good with add-ons more than compensating for any transitory dips. Excellent share with lots to come.
Stokey12, I'm glad I'm not alone. Looks like we have a similar mindset, I have been here a while but I'm not prepared to pump money into fund growth for growth's sake. The debt facility is there as well but equally I don't want to see the group get up to it's eyeballs in debt to gain an acquisition. Boring I know but I would like to see some consolidation, looking at the job's board and steady influx of consultants, I can safely guess our payroll costs will be higher than ever when they announce the interim results, I will be keen to see our current costs as groups with lots of recent acquisitions always tend to be bloated for a time until the board actively starts to look at streamlining costs.
Not many companies on AIM markets are profitable or pay dividends especially technology ones tend to reinvest into R&D.
Scrodingerscat In relation to your 16.56 post I agree with you if there was a rights issue I am not sure I would participate unless I can see a clear path to profitability and eventual dividends as I need to see a return on my investment.
Nobody I am sure doubts the abilities of TPG to build on the contacts it has gained from acquisitions or the deep relationships it has built with just initially small wedge orders. The organic growth and repeat orders from over the last couple of years demonstrate that.
My concern is the lack of profitability, even the last results (I'm paraphrasing here) basically said we don't like the new accounting rules so ignore the bottom line. But it's difficult to ignore the bottom line when every year the group has a loss due to one exceptional item or another. If TPG can get to a point of making an actual profit of a few million then the cost of an acquisition becomes less of an issue because we are not just swapping cash (which from the last raise we don't have a lot left of now) for revenue. Also we can't entirely discount a rights issue to fuel more acquisitions when cash is exhausted.
Spot on TT
Yes Adastra, The fact that a small company in Fareham can have the US DoD as an end customer speaks volumes. Any production is a year away but it demonstrates TPG's ability to grow niche businesses with long term potential. I expect that lift BV may have had a hand in this which itself was was 2/3 acquired by the purchase of Sapienza. Sapienza itself has proved a major contract winner. It all demonstrates the web of business that TPG is building along with credibility and a high barrier for competitors.
As a thought both LAST years revenue and our forward order are higher than our MC!! Our losses are always minimal as though we're being orchestrated to maximize revenue. So in my view it will take very little to break into meaningful profit and then 15p will be the starting point! Possibly this year even - onwards and upwards.
Quality and the fact that a lot of TP business is embedded will help. New areas of expertise are being added to existing infrastructure. The business has excellent credibility which crosses the divisions. Either under existing management or a bigger player, TP technology is high value high barrier to entry. Worth 15p a share any day of the week. Looking at 0.6p eps gives a fair p/e.
Watch this share for over one year , still not invested as not seen statements on profit margins or turnover.
Very frustrating indeed and agree a good company and has massive growth.
But without profit its the same story
quite right a4007053. However one of their services is in fact product management and oversight! They've proved that astute acquisitions grow revenue. They have publicly stated they want to grow the MC. My hope is that they are now working ON the business instead of IN the business
The point is simple with TPG - they need to prove that they have a profit making model.
All of these contract wins are all well or good - but its difficult to tell if they are loss making or not. The contracts pretty much all relate to complex, niche projects. The key to success for TPG is having effective project management and aligning this to their commercial departments
Two of the most exciting areas to invest at the present time are Hydrogen power and Artificial Intelligence. TPG ticks both boxes. This is gradually becoming a very attractive company to invest in. I agree that the market has generally overlooked this company but investors with interests in ITM, PHE and Proton are now looking around for the next company with the potential to emulate their success and I think that TPG meets that criteria.
Quite right Thordon. This is exactly why our compact offering could be big in trains. Your point is?
TP Group specialize in micro Hydrogen production , so would need to expand on mayor production.
Revisit your link - it's towards the end.
Thanks TruroTrader, haven’t seen inside, I’ll try and find it. This company IMO will some day get’s recognition it deserves. They just need to keep pushing. I was in ITM from 20p but bailed earlier because the share price does not reflect reality, still doesn’t. I prefer a company to build value in it’s share price through results, slow as she goes. But this is too slow!